I hereby promulgate the Transaction Tax Law. Signed:HIROHITO, Seal of the Emperor This seventh day of the seventh month of the twenty-third year of Showa (July 7, 1948) Prime Minister ASHIDA Hitoshi Law No.108 Table of Contents Chapter I General Provisions Chapter II Taxation Standards and Tax Rate Chapter III Payment and Declaration Chapter IV Special Rules for the Declaration and Payment applicable to Financial Institution and Others Chapter V Reassessment and Deteamination Chapter VI Review and Appeal Chapter VII Miscellaneous Provisions Chapter VIII Penal Provisions Supplementary Provision The Transaction Tax Law Capter I General Provisions

(Scope of taxation) Article 1. Transactions made in the enforcement area of the present Law by traders as business shall be subject to the transaction tax pursuant to the present Law.

(Definitions) Article 2. (1) Businesses as used in the present Law shall include: 1. Sales of goods (hereinafter including sales of items which are not ordinarily called good, such as animals and vegetables) 2. Banking business (meaning hereinafter financial business engaged by banks, the Agricultural and Forestry Central Bank, Industrial and Commercial Association Central Bank, Pension Bank, People's Bank, Reconstruction Finance Bank, and other financial institutions as may be provided for by Ordinance) 3. Mujin business 4. Trust business (including hereinafter trust business set forth under the Secured Debentures Trust Law (Law No.52 of 1905) 5. Insurance business (to be limited hereinafter to such insurance business as licensed by the competent Minister in accordance with the Insurance Business Law (Law No.41 of 1939) 6. Money lending business 7. Lending of goods (including lending of items which are not ordinarily called goods, such as animals and vegetables) 8. Production (including the processing and repair of goods) 9. Supply of electricity 10. Supply of gas 11. Radio and broadcasting business 12. Freight transportation 13. Transportation agency 14. Motor road business 15. Canal business 16. Pier business 17. Anchoring business 18. Stevadoring business 19. Warehouse business (including custody of goods by trust such as safety-trust) 20. Contract 21. Printing 22. Publication 23. Photographing 24. Sekikashi 25. Hotel business 26. Restaurant business 27. Brokerage 28. Commission agency 29. Go-between 30. Agency 31. Money exchange 32. Mining 33. Placer-mining 34. Stonecutting 35. Beauty shop (excluding barber) 36. Show business 37. Vaudeville 38. Indoor game business 39. Sight-seeing business (2) Businesses as enumerated in the preceding paragraph shall include undertakings incidental thereto in nature (3) Traders as used in the present Law shall be defined as persons engaged in any of the business enumerated in Par.1 within the enforcement area of the Law, with or without a business place.

(Pseudo-traders) Article 3. In case a corporation with non-profit making purpose is engaged in any of the undertakings same as or similar to any of the business referred to under Par.1 of the preceding Article, the corporation shall be deemed a trader and the undertaking as business in the present Law.

(Unincorporated institution) Article 4. Unincorporated foundations shall be deemed incorporated in the present Law if their articles of foundation furnish provisions for representatives or custodians.

(Taxpayer) Article 5. (1) A trader who receives countervalue for transaction defined in Art.9, Par.1 is liable to pay the transaction tax. (2) Partners of a business are jointly liable to pay the transaction tax. (3) In case a transaction is made in the form of swap or in similar ways, each party of the transaction shall be deemed the traders who have received countervalue for his transaction as for the application of the provisions. of Par.1.

(Succession of tax liablility) Article 6. (1) In case of the amalgamation of corporations, the corporation which continues to exist after, the amalgamation or has been newly created by the amalgamation shall succed the tax liabilities of the corporation which ceased to exist due to the amalgamation. (2) If, in case of the dissolution of the corpocation, the corporation divides or delivers the residual assets without paying the transaction tax, the respective recipients of the divided or delivered assets shall be jointly liable to pay the tax only to the extent of the assets they received. (3) In case the inheritance business has been started, the transaction tax due to the transctions of the decedent shall be paid by the heir who succeeded the decedent. (4) If, in the case of the preceding paragraph, there are more then two heirs, each of them shall be jointly liable to pay the tax.

(Tax free transactions) Article 7. The following transatcions shall be free from the transaction tax: 1. Sale of official gazette, postage stamps, revenue stamps and the likes; 2. Sale of Government manapoly items; 3. Sale to the Government of the bullion of gold, silver, platium, or the alloy of them, and metals for mint; 4. Publication, sale or sale's agency of texts of primary and middle schools (including a blind, deaf or nursery school); 5. Supply of water under the Water Supply Act (Law No.9 of 1890); 6. Export business (including sale of goods for export to the Government, Mineral Trade Kodan, Textile Trade Kodan, or Food Trade Kodan); 7. Intermediation, production, processing and sale of staple, foods (shall in this number mean the staple foods as referred to under Art.2 of the Food Control Law (Law No.40 of 1942)) done in accordance with the provisions of the said Law;provided, however, that the sale other than to final consumers (including, coupon restaurants) shall be excluded; 8. Production, intermediation and sale of vegetables, perishable fishes and shells as well as bean paste, soy-bean sauce, milk and other foodstuffs and fuel distributed in accordance with Temporary Material Demand and Supply Adjustment Law (Law No.32 of 1946) to be designated by ordinance; 9. Production, intermediation and sale of goods to which the State pays the price adjustment subsidies and which may be prescribed by Ordinance;provided, that the sale to the Coal Distribution Kodan or to the Fertilizer Distribution Kodan, and sales made by the above to two Kodan (including the fertilizer traders as defined by the provisions of Art.15, Par.1, Item 4 of the Ordinance concerning the Fertilizer Distribution Kodan...... Imperial Ordinance No.171 of 1947......), of such coal or fertilizer as are not subsidized the price adjutment subsidies shall be excluded; 10. Transactions made by the Price Adjustment Kodan for the sake of price adjustment by virtue of the provision of Art.15 of the Price Adjustment Kodan Law (Law No.62 of 1947). 11. Sale of Agricultural, forestry, livestock raising, dairy, or marine products (including cocoons) which the seller raised himself, either in the original or processed form;provided, sales made by a person havsng a business place for that purpose shall be excluded; 12. Transfer of securities (meaning the one defined under Art.2 of the Securities Trarsfer Tax Law...... Law No.7 of 1937......) 13. Transporation of passengers as prescribed in Art.1 of the Travelling Tax Law (Law No.43 of 1940). 14. Transactions subject to the herce-race tax, the Exchange special tax or the bourse tax by virtue of the Horse Race Tax Law (Law No.60 of 1942) or the Bourse Tax Law No.23 of 1914)

(Institutions immune from imposition) Article 8. (1) The State and local public bodies shall be immune from the imposition of the transaction tax. (2) Kodan shall not be deemed the State with respect to the application of the provisions of the preceding paragraph.

Chapter II Taxation Standards and Tax Rate

(Taxation standards) Article 9. (1) The taxation standard of the transaction tax shall be the countervalue received as the consideration for transactions (hereinafter be called the amount of transactions) and shall include each type of transactions: 1. Sales of goods:anount of sales; 2. Banking business:interest of loan, discount charge of bills, commissiors, loan charge of securities, debt-guarantee fee, safety trust fee, and othor receipts of similar natune arising out of transactions; 3. Mujin business:profit from Mujin, contracts profit from tender balance;differential profits, interest of loan, commissions;surrender charge and other receipts of similar nature arising out of transactions; 4. Trust business:reward for trust (excluding the amount equivalent to the reward to the loaning of money kept in trust in case of a monetary trust), interest of loan, commissions, loan charge of securities, debt-guarantee fee, safety trust fee, and other receipts of similar nature arising out of transactions; 5. Insurance business:amount of paid-in premium (excluding the amount received owing to reinsurance contract;hereinafter the same) interest of loan, commissions, debt-guarantee fee, loan charge of securities, safety trust fee and other receipts of similar nature arising out of transactions; 6. Transportation agency, brokerage, commission agency, go-between, agency and money exchange:commission or reward (in case coming under the provisions of Par.4 or 6, the sum total of the selling price of goods wich they are deemed to have sold by virtue of the provisions of Par.4 or 6, and of the comission and/or reward); 7. Other business:receipts from transactions. (2) Amount of paid-in premium provided for under No.5 of the preceding paragraph shall be the amount reduced by 75% in respect to the life insurance (exclusive of fixed insurance) and by 30% in respect to other insurance. (3) In case of a transaction made in the form of swap or in similar ways, the taxation standard shall be the value which each party of the transaction would pay if it were not settled by swap. (4) If, in the case o, 0. commission agency, agency and the like, the agent (trustee) has made the sale in his own name in behalf of the trustor, the trustee shall be deemed to have made the sale for himself at the selling price. (5) If, in the preceding paraguaph, the trustor has received from the trustee the amount equivalent to all of or part of the selling-price of articles concerned (including the part of the selling price which is offset against the commission or reward) the trustor shall be deemed to have sold the articles to the trustee at that time at the price (including amount in offset) received by the trustor. (6) If in the case of a commission agency, agency, and the likes, the ageut (trustee) has sold the articles which he had purchased in his own name in behalf of the trustor to the trustor, the trustee shall be deemed to have sold the articles to the trustor at that time at the sum total of the price the trustee had paid for the purchase and the commission on amount of fee. (7) In case a person engaged in a transportation business or transprotation agency has made contract in his own name on behalf of others engaged in the same business, the latter shall be deemed to have received the value for the transaction concerned at the time the former delivered to the latter the value for the transaction (including the amount in offset). (8) Amount of sales as referred to under Par.1 No.1, commission or rewsrd under No.6 of toe same paragraph or receipts under No.7 of the same paragraph shall include receipts arising out of the transactions as prescribed in Art.2, Par.(2).

(Tax rate) Article.10. The tax rate of the transaction tax shall be 1% of the amount of a transaction provided for under the preceding Article.

Chapter III Payment and Declamation

(Payment in the form of the revenue stamp) Article 11. (1) A taxpayer of the transaction tax shall, excluding cases where he makes such transactions as are referred to under Art.15, Par.1 or where Chapter IV prevails, pay the tax in the form of the transaction tax revenue stamp;however, paying the cash to the Governmont and obtaining the certification of the transaction tax made by the Government, he may substitute it for the transaction tax stamps. (2) The transaction tax revenue stamp as is referred to under the preceding paragraph shall be provided for in particular. (3) The form of the certificate of the transaction tax as is referred to in the proviso of Par.1 shall be set forth by the Minister cf Finance.

(Computation of fraction) Article 12. If, in the case of the preceding Article, there is a fraction of 10 yen in the amount of a transaction (when the countervalue is received in instalment, each instalment shall be deemed a transaction in the present Law) prescribed under Art.9, the fraction shall be omitted in computing, the amount of the transaction tax.

(How to pay in the form of the revenue stamp and others) Article 13. (1) A taxpayer of the transaction tax to whom the provisions of Art.11 is to apply shall cancel the transaction revenue stamp or the certificate of the transaction tax (The two shall hereinafter be simply referred to as the revenue stamp) equivalent to the amount of tax, when the countervalue of the transaction is received;provided that in case the amount of a transaction prescribed under Art.9 proves to be not less than 10,000 yen, he shall paste revenue stamp on the receipt and then cancel it. (2) The revenue stamp or the receipt cancelled pursuant to the provisions of the preceding paragraph shall be delivered to the other party of the transaction, when the countervalue of the transaction is received. (3) In case both parties of transactions are in agreement whereby credit and debt accounts are cleared by comparing the balance after certain lapse of time or there is a similary agreement the amount of transactions shall be deemed to be received by both parties at the time when the offset date arrives (if the date does not arrive in 6 months, the term shall be 6 months) and the preceding two paragraphs shall apply thereto. In this case, the sum total shown at the time of offset shall be deemed the amount of a transaction. (4) Excepting the case prescribed in the preceding paragraph, if the countervalue of transactions may be settled by offset the amount of transactions shall be deemed to be received by both parties at the time when conditions for offset are filled and the provisions of Pars.1 and 2 shall apply thereto. In this case, the latter part of the preceding paragraph shall also apply with necessary modifications. (5) In the preceding two paragraphs, a paper attesting to the amount pursuant to the preceding two paragraphs may substitute for the receipt as referred to under the proviso of Par.1. (6) The cancellation referred to under the proviso of Par.1 shall be made clearly with the signature or seal of the issuer of receipt which shall go across the receipt (hereinafter inclusive of a paper as prescribed in the preceding paragraph) and the inner design of the revenue stamp.

(Eiling of return) Article 14. (1) A taxpayer of the transaction tax shall, excepting cases as referred to under Chapter IV, file, every year by 10th of March, June, September and December, a return with the Government, stating therein, covering the past three months ending February, May, August and November, the amount of transactions and of the transaction tax, classifying the transactions into those coming under Art.15, Par (1), and others;provided, however, that in case a taxpayer goes out of business, he shall file a return within the days after the date he has gone out of business. (2) When unavoidable reasons ars recognized to exist in view of difficulties in communications or transportations, the Government may, as may be provided for by Ordinance, extend the time limit of the filing of the return referred to under the preceding paragraph. (3) If there are two or more business places, a return as prescribed in Par.1 shall be prepared in each of the business places.

(Special rule for payment applicable to special transactions) Article 15. (1) In case the amount of each transaction as prescribed under Art.9 is less than 50 yen, or the delivery provided for under Art.13, Par.2 is approved by the Government to be difficult, the taxpayer shall pay the transaction tax equivalent to the amount of every three months transactions ending in February, May, August and November on the date on which the return is to be filed pursuant to the provisions of the preceding Article. (2) The provisions of Art.13, Pars.3 and 4 shall apply with necessary modifications to the transactions provided for under the preceding paragraph.

Chapter IV Special Rules for the Declaration and Payment applicable to Financial Institutions and Others

(Special rule applicable to financial institution and others) Article 16. The traders of the banking business mujin business, trust business, insurance business, supplier of electricity, supplier of gas, radio and broadcast business, railway business, in transpotation business (inclusive of tram-way business), shipping business (inclusive of transportation by water within the water area), motor-vehicles trasportation business prescribed under Art.10, Par.1, No.1 (3) of the Road Transportation Law (Law No.191 of 1947), daily paper publication business in the publishing business, other businesses as may be provided for by Ordinance and Kodans shall file a return and pay the tax pursuant to Arts.17&18.

(Declaration of financial institution and others) Article 17. (1) The trader enumerated in the preceding Article shall file a return with the Government, stating therein the amount of transaction and tax liabilities of each month, by 10th of the following month. (2) The provisions of Art.13, Pars.3&4, the proviso of Art.14, Par.1, and Pars.2&3 of the same Article shall apply with necessary modification to the case of the preceding paragraph. In this case, "the preceding two paragraphs" in Art.13, Par.3 and "Pars.1&2 in Par.4 of the same Article" shall read "Art.17, Par.1" .

(Payment of banking business and others) Article 18. (1) The transaction tax declared in the return referred to under Art.17, Par.1 shall be paid by the time limit of filing the return provided for under the same paragraph (in the case of the proviso of Art.14, Par.1 or Par.2 of thh same Article as applied by virtue of Art.17, Par 2, by the time-limit shall be the one as provided for under the proviso of Art.14, Par.1 or Par.2 of Art.14). (2) In case taxpayer has failed to pay the transaction tax in accordance with the preceding paragraph, the Government shall demand the payment pursuant to Art.9 of the National Tax Collection Law (Law No.21, 1897).

Chapter V Reassessment and Determination

(Reassessment and determination) Article 19. (1) If, in case where the return prescribed under Art.14 or 17 is filed, the amount of transaction or tax declared or revised differs from what is investigated by the Government, the Government shall, on the basis of its investigation reassess the amount of transactions or of tax. (2) If, in case no return is filed in spite of the provisions of Art.14 or 17, the tax liabilities is recognized to exist by the investigation of the Government or the tax already paid differs from what is investigated by the Government, the Government shall, on the basis of its investigation, determine the amount of transactions and of tax (in case there is the tax already paid, the amount thereof shall be reduced). (3) In case the Government has found an omission in the amount of transactions or tax after it has made the reassessment or the determination of them pursuant to the provisions of the preceding two paragraphs, the Government may newly reassess the amount of transactions or tax on the basis of its own investigation.

(Notification of reassessment and determination) Article 20. (1) The Government, when the ressessment or determination of the amount of transactions or of tax has been effected pursuant to the provisions of the preceding Article, shall notify the same to the taxpayer. (2) In case a person who does not domicile or reside or who has no business place within the enforcement area of the present Law has failed to report of the tax payment agent as prescribed under Art.39, the notification of the preceding paragraph may be substituted in the form of a public notice;in this case, the notification shall be deemed to have been received in case 7 days have elapsed after the date of the publication.

(Reassessed or determined tax amount) Article 21. (1) In case the reassessment or determination of the amount of transactions or of tax has been made pursuant to the provisions of Art.19, the Government shall collect the tax in deficit (hereinafter meaning the tax recovered by reassessment or determination), appointing the date one month after the notification of Par.1 of the preceding Article as the time-limit;provided that in case the taxpayer lost domciile or residence within the enforcement area of the present Law, without reporting of the tax payment agent, the tax in deficit shall be collected without delay. (2) The provision of Arts.11 and 12 shall not apply to the tax in deficit prescribed under the preceding paragraph.

Chapter VI Review and Appeal

(Request for review) Article 22. (1) In case a taxpayer, who has been notified of the Government decision on the amount of transactions or of tax accordance with the provisions of Art, 20 or on the amount of tax in accordance with the provisions of Art.29 Par.2, has an objection, he may request a review to the Government, stating reasons of his dissatisfactions with in a month after the notification is received. (2) The Government will not defer the collection of the tax even if the application of the preceding paragraph has been made;provided that the collection of the tax may be deferred in case the Government recegnized good reasons.

(Notification of the result of review) Article 23. In case the request referred to under Par.1 of the preceding Article has been filed, the Government shall settle the request and notify the settlement to the taxpayer.

(Appeal and Law suit) Article 24. (1) A person who has an objection to the settlement of the preceding Article may make a petition. (2) A petition to be filed against the reassessment or determination made by the Government pursuant to the provisions of Art.19 or against the penalty tax prescribed under Art.29, Par.1, may be filed only after the review is completed by the Government.

Chapter VII Miscellaneons Provisions

(Request for refundment) Article 25. (1) In case a taxpayer has returned the whole or part of the amount of transaction on which the transaction tax has been paid, because of cancellation or rescission of the contract or other reasons (or, in case, if, the provisions of Art.13, Par.3 or Par.4...... including in case where it is applicable with necessary modification by virtue of Art.15, Par.2 or Art.17, Par.2...... has been applied, he is liable to return the whole or part of the amount of transaction on which he is deemed to have collected), he may, appending the documentary evidence which proves the fact, request the refundment of the money equal to the amount of the transaction tax corresponding to the cancelled or rescinded part of the amount of the transaction. (2) In case the request of the preceding paragraph has been made, the Government shall, when convinced as to conformation of the fact, refund the money requested.

(Inspection of document) Article 26. (1) Any person, if he so desires, may request the Government of the inspection of returns filed by a taxpayer of the transaction tax or documents of reassessment or determination of the amount of transaction or amount of tax. (2) Any person who desires the inspection according to the provisions of the preceding paragraph shall pay a fee of 10 yen per return or other document of one taxpayer.

(Information of a third party) Article 27. (1) In case an information given to the Government of the fact that a person deemed liable, to pay the transaction tax is in contravention of the provisions of Art.13, Par.1 or 2, or has failed to file the return or of the transaction tax, or of the suspicion of an omission in the amount of transaction or of the tax declarated, has led the Government to the reassessment or determination of the amount of transaction or of the tax, the Government may give the informer an amount not exceeding 10% of the tax recovered by the reassessment or determinationn as a reward;provided, the reward shall not exceed 200,000 yen. (2) The provisions of the preceding paragraph shall not apply in case the information has originated form the fact collected by illegal behaviors or, if the informer happens, to be a public servant, from knowledge acquired on official business.

(Additional tax) Article 28. (1) In case a taxpayer is to pay the additional tax as provided for in Art.21, Par.1, he shall pay a tax, in addition to the basic tax, which is to be computed according to the term of time prescribed by Ordinance, by multiplying the tax in deliquency at the rate of 10 sen per 100 yen per diem. (2) The provisions of Art.11 shall not apply to the amount of the tax to be paid additionally pursuant to the provisions of the preceding paragraph. (3) The provisions of Paragraph 1 shall not apply in case the basic tax is less than 100 yen. In case the amount of the basic tax has a fraction of 100 yen, the fraction shall be omitted in computatian. (4) In case the amount of tax to be added pursuant to the provisions of Pars.1 and 3 is less than 10 yen, it need not be paid. (5) The additional tax of Par.1 may be exempted in case unavoidable circumstances are recognized to exist by the Government. (6) The provisions of the preceding five paragraphs shall apply in respect to the case where taxpayer of the transaction tax files a return or a return which revises the previous return pursuant to the provisions of Art.14, or Art.17 and pays the tax, after the elapse of the filing date as prescribed in Art.14, Par.1 or Art.17, Par.1 (including the filing date prescribed under Art.14, Par.2 and Art.14. Par.1, proviso and Par.2 as applied with necessary modification by virtue of Art.17, Par.2). (7) The provisions of Art.18, Par, 2 shall apply with necessary modification in respect to the case of Par.1 (including the case where Par.1 is applied with necessary modification by virtue of Par.6).

(Penalty tax) Article 29. (1) In case where the preceding six paragraphs are to apply or, the transaction tax equal to the penalty tax prescribed under Art.21, Par.1 is to be collected, he Government shall, excepting cases where are good reasons for the failure to file a return by the filing date provided for under Art.14, Par.1, Art.17, Par.1 or, when the return which revises the previous return pursuant to the provisions of Art.14 or Aar.17 has been filed, for an omission in the amount of transaction or of the tax declared formerly, or for the difference between the amount of transaction or of the tax declared or revised by the taxpayer and the same invstigated by the government, collect the panalty tax equal to the amount computed by multiplying the basic tax by 25%. (2) The Government shall, when it has determined the amount of tax to be collected pursuant to the provisions of the preceding paragraph, inform the same to the taxpayer. (3) The provisions of Art.20, Par.2 shall apply with necessary modification it regard to the case of the preceding paragraph.

(The purchasing procedure of ths revenue stamp and others) Article 30. (1) The taxpayer of the transaction tax to which the provisions of Art.11 is to apply shall prepare a purchase book of the revenue stamp of the transaction tax (hereinafter be called purchase book) in every business place. (2) The taxpayer of the transaction tax mentioned in Par.1 shall when be desires to purchase the stamp or be delivered the certificate of the transaction tax, show the purchase book to the Government or the seller of the stamp and have the Government or the seller enter in and confirm the amount of the stamp purc hased or the certificate received, the date of the purchase or receipt. In this case the Government or the seller shall clearly, indicate the agency name or the residence and name or title of the seller. (3) The transaction tax stamp and others to be used by the taxpayer of the transaction tax of Par.1 for the payment of transaction tax shall be the one which was purchased or received with the purchase book equipped in the business place pursuant to the provisions of the preceding two paragraphs. (4) If a taxpayer of the transaction tax mentioned in Par.1 finds himself in excess possession of the revenue stamp of the transaction tax over what he needs because of the abolition of his business or of other reasons, be may, get permission of the Government and transfer the revenue stamp of the transaction tax and others held in excess. (5) The form of the purchase book of Par.1 shall be determined by the Minister of Finance.

(Procedure or sale of the stamp and others) Article 31. The Government or the seller of the revenue stamp of the transaction tax shall not sell or deliver the stamp without indicating on the purchase book the matters set forth under the paragraph 2 of the preceding article.

(Obligation of entry of a taxpayer) Article 32. (1) A taxpayer of the transaction tax shall prepare a book, and enter in it the details of transactions, amount and the tax, the date of transactions and the residences and names or titles of the other parties of transactions. (2) The taxpayer of the transaction tax coming under the provisions of Art.11 shall enter, besides the items of the preceding paragraph the following items for each day: 1. The amount of the revenue stamp of transaction tax used for purpeses of tax payment pursuant to the provisions of Art.13, Par.1. 2. The amount of tranfactions concerned in case of the transaction made pursuant to the provisions of Art.15, Par.1. (3) In the case of retail sales, and dusiness mentioned in Art.2, Par.1, Items.14, 15, 23-26 inclusive, 31 or 35-39 inclusive, or in case the Government has so approved, the amount of transaction for each day and the date of transaction shall be entered notwithstanding the provisions of Par.1;provided the Government may, if deemed necessary for purposes of supervision, order the entry of the matter mentioned it the provisions of Par.1:

(Obligation of entry of a stamp seller) Article 33. A seller of the revenue stamp of transaction tax shall prepare a book and enter it it the following matters: 1. The kind and amount of the stamp purchased, the date of purchase and the residence and name of title of its seller. 2. The amount of the stamp sold, the date of sale and the residence and name or title of the purchaser.

(Declaration of business) Article 34. (1) A person who desires to open any of the businesses prescribed under Art.2, Par.1 within the enforcement area of the present Law shall declare to the Government the kind of business, the business place (if there is no business place within the enforcement area of the present Law, domicile or residence of the taxpayer, and in case of no domicile or residence of the taxpayer, the same of the tax payment agent the same goes hereinafter excluding Art.39) for every business place and the name or title of the trader. The same shall hold good in case he desires to open a naw business place. (2) A taxpayer of the transaction tax shall, when he changes or abolishes the nature of his business, or removes or abolishes the business place, or changes his name or title, declare the same to the Government. The same shall hold good in the case where a person who has no business place changes his domicile or residence. (3) In case there has been an amalgamation of corporations liable to pay the transaction tax, the corporation which continues to exist after, or created by the amalgamation shall declare about the amalgamation to the Government. (4) If an inheritance has taken place on a taxpayer of the transaction tax, the successor shall declare to the offect to the Government.

(Right of examination and inspection of taxation officials) Article 35. (1) Taxation officials may, when necessary for the investigation of the transaction tax or its collection examine the person enumerated hereunder or inspect books, papers or other things relating to the business thereof: 1. Persons liable or deemed liable to pay the tax; 2. Persons who are deemed to have or to have had money or things due to or due from persons liable or deemed liable to pay the tax; 3. Sellers or the revenue stamp of transaction tax. (2) Taxation officials may, if necessary for investigation of the transaction tax or its collection, examine an organigation of taxpayers (or a federation of the organizations) on matters relative to the transactions engaged by its members or inspect books, documents and other things held by the organization.

(Prohibition of the sale of used stamps) Article 36. (1) No person shall transfer or obtain for counter-value the revenue stamps of transaction tax, etc. delivered pursuant to the provisions of Art.13, Par.2. (2) No person shall collect, taking reward, the revenue stamps of transaction tax, etc. delivered pursuant to the provisions of Art.13, Par.2 or make others do the same by giving reward.

(Delivery of Grant) Article 37. In case a person who comes under any of the following numbers tendered the revenue stamp of transaction tax, etc. cancelled pursuant to the provisions of Art.13, Par.1 to the Government, the Government shall give him a grant equal to 5/100 of the face value in regard to a stamp of not more than 1 yen, and 3/100 in regard to a stamp of not more than 20 yen, and 2/100 of the face value in regard to a stamp of more than 20 yen: 1. A body organized for the common benefit of members by teachers, students or pupils of a primary school middle school, high school, college, blind school, deaf school, protection school, kindergarten or of schools which continue to exist under the old school system by virtue of the provisions of Art.98, Par.1 of the School Education Law (Law No.26, of 1947); 2. A body organized by these who are employed by a charitable instritution as provided for under the Social Charity Act, (Law No.59 of 1938), a relief institution as provided for under the Relief Act (Law lNo.17 of 1946), a juvenile welfare institution as provided for under the Juvenile Welfare Act (Law No.164 of 1847) and a juridical protection institution as provided for under the juridical protection Act (Law No.24 of 1939) and by beneficiaries of these institutions or facilities, for their common benefits; 3. Other persons as may de paovided for by Ordinance. (2) The procedure for the delivery of the grant shall be set forth by the Minister of Finance. (3) The grant given in accordance with the provisions of Par.1 shall be used only for thee interest of those who are prescribed in the same paragraph. (4) The provisions of Par.1 shall not apply in regard to revenus stamps of transaction tax, etc. delivered pursuant to the provisions of Art.13, Par.1 to the state, a local public body or a kodan.

(Place of payment) Article 38. The place of payment of the transaction tax paid by a trader of Art.15, Par.1 or by a person mentioned in Art.16 shall be the business place of the taxpayer.

(Taxpayment agent) Article 39. When a taxpayer of the transaction tax does not live in the business place or, when a tax payer who has no business place within the enforcement area of the present Law has no domicile or residence within the same area, he shall appoint, and inform to the Government of a tax payment agent who is domiciled at the business places (or in case of no business place or domicile or residence within the enforcement area of the present Law, at some place in the enforcement area of the present Law) and who will handle all the affairs relative to the transaction tax including filing of returns;the same shall hold good in case a taxpayer who cases to live at the business place, or a taxpayer who has no business place within the enforcement area of the present Law cases to be resident or domiciled within the same area, or in case a taxpayer changes his taxpayment agent.

(Prohibition of surtax) Article 40. Local public bodies shall not impose any surtax to the transaction tax.

Chapter VIII Penal Provisions

Article 41. (1) A person who comes under any of the following numbers shall be fined equal to 20 times as much as the amount of the tax he has evaded or tried to evade: 1. A person who has violated the provisions of Art.13, Par.1; 2. A person who has tried to evade the transaction tax by neglecting the filing of a return prescribed under Art.14 or Art.17; 3. A person who has tried to evade the transaction tax by neglecting the filing of a return prescribed under Art.34; 4. A person who has evaded or tried to evade the transaction tax by an act of fraud or other unjust means. (2) The Provisions of Art.12 shall not apply to the case of the preceding paragraph.

Article 42. (1) A person who has committed the crime of the preceding article may, in consideration of the circumstances, be imprisoned for 5 years or less or fined equal to more than 20 times but not more than 40 times as much as the amount of the tax he has evaded or tried to evade, or both. (2) In the case of the preceding article an the preceding paragraph, if the fine is proved to be less than 20 yen, it shall be made 20 yen. (3) In the case of the preceding Article and Par.1 above, the tax shall be collected at once. (4) The provisions of Par.2 of the preceding Article shall apply with necessary modification to the case of Par.1 and the provisions of Art.21, Par.2 to the case of Par.3.

Article 43. A person who comes under any of the following numbers shall be fined not more than 100,000 yen: 1. A person who has falled to file a return pursuant to the provisions of Art.14 or Art.17, or declared to the Government falsehood in the return; 2. A person who has violated the provisions of Art.30, Par.1 or Par 2; 3. A person who has used the revenue stamp of transcation tax, etc. in contravention of the provisions of Art.30, Par.3; 4. A person who has sold the revenue stamp of transaction tax, etc. in contravention of the provisions of Art.31; 5. A person who has sold, purchased, collected or made others collect the revenus stamp of transaction tax, etc. in contravention of the provisions of Art.33.

Article 44. A person who comes under any of the following numbers shall be fined not more than 50,000 yen: 1. A person who has violated the provisions of Art.13, Par.2; 2. Excepting the case of Art.41, Par.1, item 3, person who has been engaged in business or opened a business place in contravention of the provisions of Art.34; 3. A person who has not prepared the book pursuant to the provisions of Art.32 or Art.33, failed to make necessary entry, entered falsehood or hidden the book; 4. A person who has failed to declare pursuant to the provisions of Art.34, Pars.2-4 inclusive or a person who has declared falsehood; 5. A person who has not answered or falsified the answer to the questions of taxational officials in spite of the provisions of Art.35 or rejected, disturbed or evaded the inspection 6. A person who has failed to inform pursuant to the provisions of Art.39, or made a false information.

Article 45. A person who has intentionally given a false information about the transaction tax of others concerning the matters prescribed in Art.27, Par.1 to the Government shall be imrisoned for not more than 3 years or fined not more than 10,000 yen.

Article 46. When a person who is or was engaged in the business concerning the transaction tax has divulged or abused the secret acquired in respect to the business, he shall be imprisoned for not more than 2 years or fined not more than 20,000 yen.

Article 47. To a person who has committed the crime of Art.41 the provisions of the proviso of Art.38 Par.3, Art.39, Par.2, Arts.40 and 41, Art.48, Par.2, Arts.63 and 66 of the Criminal Code shall not apply provided that this shall not hold good in regard to the case where an imprisonment is to apply in accordance with Art.42.

Article 48. (1) When a representative of a corporation (hereinafter including foundations prescribed in Art.4) or an agent, employer or other worker of a corporation or of a natural person has been in contravention of Art.41, 42, 43 or 44 concerning the business or property of the corporation or of the natural person, the corporation or the natural person shall be fined in accordance with the preceding penal provisions, besides the person who actually committed the crime. (2) In case a foundation prescribed under Art.4 is to be charged on account of the violation of the present Law, the representative or custodian of the foundation shall represent the foundation in legal procedure. Besides this provisions of criminal suit applicable in case a corporation is a defendant shall apply with necessary modification to this case.

Supplementary Provisions:

Article 49. (1) The provisions of Arts.30, 31, 33 and 34 of the present Law shall come into force as from the promulgation day of the present Law. The provisions of the rest of the Articles shall come into force as from Sept.1, 1948. (2) In case the provisions of Art.30 and Art.34 are enforced during the promulgation day of the present Law and Aug.31, 1948, "a taxpayer of the transaction tax to whom Art.11 is to apply" and "a taxpayer of the transaction tax mentioned in Par.1" as are mentioned in Art.50, and "taxpayer of the transaction tax" and "a corporation who is liable to pay the transaction tax" as are mentioned under Art.34 shall respectively read "a trader referred to in each item of Art.2, Par.1" for the application of Arts.30 and 34. (3) The transaction tax shall be due on transactions countervalues which are said on and after Sept.1, 1948.

Article 50. (1) A person who is engaged in the business prescribed in Art.2, Par.1 on the promulgation day of the present Law shall make the declaration to the Government within one month after that date according to the provisions of Art.34. (2) The provisions of Art.44 No.2 and Art.48 shall apply to the preceding paragraph.

Article 51. The Anti Imitation Stamp Law (Law No.189 of 1947) shall be partly amended as follows: In Art.1, Par.1, next to "the seals representing...... the Stamp Law" "or a certificate of the transaction tax received from the Government by paying cash pursuant to the provisions of Art.11, proviso, of the Transaction Tax Law" shall be added, and, next to "seals" "or indications" shall be added.

Article 52. The Law concerning Reduction, Exemption and Postpenment of Collection of Taxes and others for Sufferers from Calamities (Law No.175 of 1947) shall be partly amended as follows: In Arts.8 and 9, "and the commodity tax" shall read "the commodity tax and the transaction tax."

Minister of Finance KITAMURA Tokutaro Prime Minister ASHIDA Hitoshi